Hi all,

Seeing as many of us here -- especially yours truly -- have encountered financial trouble, this seemed as good a board as any to ask whether Fools use accountants.

I do, but I'm self-employed and have a reasonably complex tax situation. How about you? If you're willing to comment to this thread, and don't mind being quoted, I may include your take in an article I'm writing for Monday called "Is It Time for an Accountant?"

Thanks much and Foolish best,

Tim
TMFMileHigh

	I use an account for my taxes and more
	I use an accountant for my taxes only
	I don't use an accountant yet but I'm shopping for one
	I don't use an accountant and don't plan to, either
	There's an accountant in my pants!

Click here to see results so far.

My financial planner suggested I use one this year, being at the end of a divorce. Seems like 2006 should be really easy (in fact, I've already calculated my return in TurboTax), but my fee includes phone consultations throughout the year as well.

I started doing my own taxes when they were simple, and continued. They have gotten a little more complex each year, but 10 years or so ago I started using TurboTax, and I do them myself with confidence.
If you use an accountant, YOU have to provide the accountant with all the numbers. The TurboTax interview takes you through all the numbers anyway.
I will continue doing my own taxes, with the help of software. From doing them before there was tax software, I know where the numbers go so the software basically does the arithmetic for me.
Best wishes, Chris

Tim;

Since I just started a business in December (OK, started starting it well before then, but it actually got off the ground in December), having an accountant has been invaluable. Here are some of the things he has helped me with:

1. Deciding the right form of organization..I wouldn't have had a clue whether to form an LLC, S-Corp, C-Corp, or a big ol' compost heap

2. Ways to save money: For example, since my tax situation will be fairly simple for a business (mostly independant contracting and services), when I asked if he minded doing my taxes, he suggested I use software, do them myself, and then he would take a look at them...thereby saving me money and him time for dig through someone else's shoebox of paperwork.

3. The ability to call or e-mail someone who knows (or knows where to find the answer) to all the tax and financial questions that I wouldn't have a clue about.

Could I have do (or can I do) all these things without him? Sure.....but it would probably take me twice as long, and cost me twice as much. :)

RkeFool

Good grief, I shouldn't post on Friday nights....OCD time.....

having an accountant has been invaluable That should read "having an accountant has been extremely valuable".

for dig should be "to dig".

Could I have do should be "Could have I done".

RkeFool--blaming his own stupidity on the sinus infection...yeah, that's it, that's the ticket. :)

I have an accountant in my pants.

I think that if you have a simple situation - W2s, interest income, mortgage interest, property taxes - you can probably feel confident doing your return yourself.

When you find yourself in a new situation (maybe AMT, capital gains, rental income, etc), and you're just not quite sure about some of the numbers... it's probably time to at least consult with an accountant. My advice would be to call around and find someone who will take the time to sit down with you and discuss your situation... not just give you a blanket answer that may or may not apply to you. Every situation is different. Set up a time to meet with them and bring all of your tax information, including your prior year return. If you've already done this year's work, bring that along and have them review it with you. You may be on the right track already, or you may be getting in over your head. In my firm, we generally don't like to take on a simple return if we know the person can get it done much cheaper without us. Don't be afraid to ask if it's really worth it for you to pay them to do the return.

As much as I like TurboTax for simple returns, I hesitate to recommend it to people who have more complex situations. I've redone several TurboTax returns for people who thought they were entering information correctly, but weren't. Either they misunderstood the questions, or didn't like the direction their tax due was going, so they changed an answer or two. They get frustrated and bring us their returns to "look over" and we'll discover a lot of basic mistakes.

I strongly suggest anyone who starts their own business take their books to an accountant for review. It's best to do it during the year, rather than during tax season when they're busiest, but that's still better than not at all. I have several clients who have simple businesses. A lot of the time they think that they (or their spouse--who doesn't have a degree in accounting) can take care of the books and they'll be in perfect order. Unfortunately, it's usually not the case. It's better to find out the right way to do things before you do them wrong for an entire year and then have to pay someone to redo the work just to clean up the books in order to prepare the return. The simplest business can turn into a nightmare by someone who thinks they know what they're doing but doesn't. I've seen it.

If you do decide to have an accountant prepare your tax return, please, please, PLEASE, make sure you look it over and understand it before you send it in or authorize them to release the eFile to the IRS. You're signing that the information is true and complete and it's your responsibility to make sure it is. If there's something you don't understand, ASK!

I voted in my pants since none of the answers fit my situation. I usually do my own taxes. I am an attorney but have no tax expertise. But, my taxes are pretty simple and I don't really need an accountant for anything else. So most of the time I don't use an accountant.

However, there have been occasional times that I've consulted with an accountant or had an accountant prepare a return. It has been situation specific and then the next year I do it myself.

I have used an accountant for the past 2 years and plan on continuing to do so. Previously I did our taxes (jointly after getting married and individually before that) using Turbo Tax or by hand. However, with the addition of rental properties in different states and some complicated 1099 issues, I decided that I needed the help of a professional. Having said that, I have an interactive relationship with him. I do check his work carefully and have him make corrections when appropriate.

I have since relied on the accountant's advice on (1) changing my withholdings appropriately with changes in job circumstances and (2) estimating capital gains taxes for the potential sale of the rental properties.

I am also an attorney and have no tax expertise. If there comes a time when we cease to have rentals, I would probably go back to doing the taxes myself with the assistance of Turbo Tax.

--eko

I never used to use an accountant - always did my own taxes. But after I got married, taxes became complicated. I lived in one state, worked in another, and had to have taxes transferred from one state to the other. Hubby traveled for work and had to file state taxes for several states. He also officiates various sports and has schedules of expenses for those. I didn't feel confident enough to start trying to figure it all out on our own and do it correctly, and it was worth it to pay someone to figure it out for us.

I voted (d): I don't use an accountant and don't plan to, either

But I will have to go once this year. I've just started a new job and can salary sacrifice a significant proportion of my income, the proviso being that the salary sacrifice agreement has to be drawn up by a licenced accountant or financial planner.

So I'll go, and pay my fee, but it will be the one and only time. And I'll have my piece of paper with MY plan on it.

Primm

My taxes are pretty easy. I am married with two kids and my wife is a SAHM and we own our home.

I have used Turbo Tax to do our taxes for the last two years or so. I use to use an accountant and would pay him 75.00 to do our taxes and for no reason other than I thought I would give it a try I started using Turbo Tax online and I am very happy with the decision.

--George

The only time I used an accountant was when I was an independent programmer for about two years. I wanted to be sure of the tax situation of "doing business as".

My DH does our taxes then explains them to me. If anything were to happen to him, I'd have to hire an accountant.

Andrea

I love seeing the results of this poll. I frequently hear people on these boards say "Ask your accountant about that." But I would have bet that at least 1/2 of us if not more don't use accountants--after all, we're supposed to be saving money and becoming financially savvy on this website. At least when I voted, itwas in deed 50% not using one and not planning on it.

I've done my own taxes since I was 12 twelve and begged my father to let me. The only mistake I've made was that year--I owed an additional 12 cents (and the stamp to send another check in cost more than that!). I did them by hand until grad school, when I started using TurboTax. Even if I still had to do them by hand, I would. I can't imagine paying someone to do paperwork and use a calculator. While I haven't had wildly unusual events, I have had some that go beyond the norm. But I've done just fine on my own.

Selphiras

I can't imagine paying someone to do paperwork and use a calculator
CPAs do more than this.

I did my taxes myself until three years ago when I started a business and bought a house. I'm my own bookkeeper, but I definitely need the services of a CPA to help me with business planning. And frankly, I am too busy these days to do the taxes, even if they were simpler. My billable hourly rate is more than my accountant's, so I'm better off spending my time building the business and letting him do the taxes.

No, I do our taxes. I like it because it means I'm really familiar with how different things affect our taxes, so DH (who was self-employed for the past three years or so) would keep the right records to get certain deductions, and that kind of thing. With a tax prep program, it's really not that bad, particularly if you keep good records throughout the year (which I don't, always, but hey, good to know, right? :-)).


--Booa

Hi everyone,

Thanks for your contributions. The story is now posted here: http://www.fool.com/personal-finance/general/2007/01/17/is-i...

Foolish best,

Tim
TMFMileHigh